Quarterly report pursuant to Section 13 or 15(d)

Other Comprehensive Income

v3.2.0.727
Other Comprehensive Income
3 Months Ended
Jun. 30, 2015
Other Comprehensive Income [Abstract]  
OTHER COMPREHENSIVE INCOME

9. OTHER COMPREHENSIVE INCOME

The components of other comprehensive income for the three-month and six-month periods ended June 30, 2015 and 2014, were as follows:

Three Months Ended
June 30, 2015
Tax (Expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 13,490 $ (4,770) $ 8,720
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period (52,119) 18,374 (33,745)
Less: Reclassification adjustment for net losses (gains) included in net income (120) 42 (78)
Net change in unrealized holding gains (losses) on available-for-sale debt securities (38,749) 13,646 (25,103)
Net change in unrealized holding gains (losses) on available-for-sale equity securities 16 (5) 11
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period (829) 290 (539)
Less: Reclassification adjustment for net (gains) losses included in net income (138) 48 (90)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships (967) 338 (629)
Net change in pension and other post-retirement obligations 1,390 (487) 903
Total other comprehensive income (loss) $ (38,310) $ 13,492 $ (24,818)
Three Months Ended
June 30, 2014
Tax (Expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 1,252 $ (443) $ 809
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 36,437 (13,015) 23,422
Less: Reclassification adjustment for net losses (gains) included in net income (284) 100 (184)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 37,405 (13,358) 24,047
Net change in unrealized holding gains (losses) on available-for-sale equity securities 323 (113) 210
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period 27,253 (9,539) 17,714
Less: Reclassification adjustment for net (gains) losses included in net income (813) 285 (528)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 26,440 (9,254) 17,186
Net change in pension and other post-retirement obligations 888 (311) 577
Total other comprehensive income (loss) $ 65,056 $ (23,036) $ 42,020
Six Months Ended
June 30, 2015
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 18,735 $ (6,625) $ 12,110
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 8,384 (3,103) 5,281
Less: Reclassification adjustment for net losses (gains) included in net income (241) 84 (157)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 26,878 (9,644) 17,234
Net change in unrealized holding gains (losses) on available-for-sale equity securities 25 (9) 16
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period 27,317 (9,561) 17,756
Less: Reclassification adjustment for net (gains) losses included in net income (261) 91 (170)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 27,056 (9,470) 17,586
Net change in pension and other post-retirement obligations 2,779 (973) 1,806
Total other comprehensive income (loss) $ 56,738 $ (20,096) $ 36,642
Six Months Ended
June 30, 2014
Tax (expense)
(dollar amounts in thousands) Pretax Benefit After-tax
Noncredit-related impairment recoveries (losses) on debt securities not expected to be sold $ 8,660 $ (3,062) $ 5,598
Unrealized holding gains (losses) on available-for-sale debt securities arising during the period 62,682 (22,347) 40,335
Less: Reclassification adjustment for net losses (gains) included in net income (15,659) 5,481 (10,178)
Net change in unrealized holding gains (losses) on available-for-sale debt securities 55,683 (19,928) 35,755
Net change in unrealized holding gains (losses) on available-for-sale equity securities 376 (132) 244
Unrealized gains (losses) on derivatives used in cash flow hedging relationships arising during the period 30,058 (10,521) 19,537
Less: Reclassification adjustment for net (gains) losses included in net income (3,705) 1,297 (2,408)
Net change in unrealized gains (losses) on derivatives used in cash flow hedging relationships 26,353 (9,224) 17,129
Net change in pension and other post-retirement obligations 1,776 (622) 1,154
Total other comprehensive income (loss) $ 84,188 $ (29,906) $ 54,282

The following table presents activity in accumulated other comprehensive income (loss), net of tax, for the six-month periods ended June 30, 2015 and 2014:

(dollar amounts in thousands) Unrealized gains and (losses) on debt securities (1) Unrealized gains and (losses) on equity securities Unrealized gains and (losses) on cash flow hedging derivatives Unrealized gains (losses) for pension and other post-retirement obligations Total
Balance, December 31, 2013 $ (39,234) $ 292 $ (18,844) $ (156,223) $ (214,009)
Other comprehensive income before reclassifications 45,933 244 19,537 --- 65,714
Amounts reclassified from accumulated OCI to earnings (10,178) --- (2,408) 1,154 (11,432)
Period change 35,755 244 17,129 1,154 54,282
Balance, June 30, 2014 $ (3,479) $ 536 $ (1,715) $ (155,069) $ (159,727)
Balance, December 31, 2014 $ 15,137 $ 484 $ (12,233) $ (225,680) $ (222,292)
Other comprehensive income before reclassifications 17,391 16 17,756 --- 35,163
Amounts reclassified from accumulated OCI to earnings (157) --- (170) 1,806 1,479
Period change 17,234 16 17,586 1,806 36,642
Balance, June 30, 2015 $ 32,371 $ 500 $ 5,353 $ (223,874) $ (185,650)
(1) Amounts at June 30, 2015 and December 31, 2014 include $1.0 million and $0.8 million, respectively, of net unrealized losses on securities transferred from the available-for-sale securities portfolio to the held-to-maturity securities portfolio. The net unrealized gains will be recognized in earnings over the remaining life of the security using the effective interest method.

The following table presents the reclassification adjustments out of accumulated OCI included in net income and the impacted line items as listed on the Unaudited Condensed Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2015 and 2014:

Reclassifications out of accumulated OCI
Amounts Location of net gain (loss)
reclassified from reclassified from accumulated
Accumulated OCI components accumulated OCI OCI into earnings
Three Three
Months Ended Months Ended
(dollar amounts in thousands) June 30, 2015 June 30, 2014
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 80 $ 163 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities 40 121 Noninterest income - net gains (losses) on sale of securities
120 284 Total before tax
(42) (100) Tax (expense) benefit
$ 78 $ 184 Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 118 $ 895 Interest income - loans and leases
Interest rate contracts 20 (82) Noninterest income - other income
138 813 Total before tax
(48) (285) Tax (expense) benefit
$ 90 $ 528 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ (1,390) $ (888) Noninterest expense - personnel costs
(1,390) (888) Total before tax
487 311 Tax (expense) benefit
$ (903) $ (577) Net of tax

Reclassifications out of accumulated OCI
Amounts Location of net gain (loss)
reclassified from reclassified from accumulated
Accumulated OCI components accumulated OCI OCI into earnings
Six Six
Months Ended Months Ended
(dollar amounts in thousands) June 30, 2015 June 30, 2014
Gains (losses) on debt securities:
Amortization of unrealized gains (losses) $ 201 $ 338 Interest income - held-to-maturity securities - taxable
Realized gain (loss) on sale of securities 40 15,321 Noninterest income - net gains (losses) on sale of securities
241 15,659 Total before tax
(84) (5,481) Tax (expense) benefit
$ 157 $ 10,178 Net of tax
Gains (losses) on cash flow hedging relationships:
Interest rate contracts $ 251 $ 3,787 Interest income - loans and leases
Interest rate contracts 10 (82) Noninterest income - other income
261 3,705 Total before tax
(91) (1,297) Tax (expense) benefit
$ 170 $ 2,408 Net of tax
Amortization of defined benefit pension and post-retirement items:
Actuarial gains (losses) $ (2,779) $ (1,776) Noninterest expense - personnel costs
(2,779) (1,776) Total before tax
973 622 Tax (expense) benefit
$ (1,806) $ (1,154) Net of tax